Presented by: JC Demarta, SVP Global Advertising, New York Times

1. The New York Times on Ad Efficiency
Jean-Christophe Demarta
SVP Global Advertising

2. The explosion of digital has forced us to
review our business models

3. Whilst advertising revenues are continuing to grow
0
175,000
350,000
525,000
700,000
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (F)2018 (F)2019 (F)
$ millions
Source: ZenithOptimedia 2018
Financial Crisis
dot.com bust
dot.com boom
Tech Acceleration

4. And digital continues to accelerate
Source: ZenithOptimedia 2017
-
50,000
100,000
150,000
200,000
250,000
300,000
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Newspapers Magazines Television Radio Cinema Outdoor Digital
$ millions

5. Print publishers are in a bit of a spin
$=

6. And despite the scandals…

7. Concern over brand safety…

8. 8
The many apologies…

11. In March, Warc estimated that the “tech tax”
accounted for 55% of all programmatic spend
worldwide.

13. Which is why we believe
The Reader-Viewer Should Be King

14. Source: Monday Note February 2017
A new equation

15. We are not trying to maximize
clicks and sell low-margin
advertising against them. We are
not trying to win a pageviews
arms race. We believe that the
more sound business strategy
for The Times is to provide
journalism so strong that several
million people around the world
are willing to pay for it.
“
”

16. 2010
500
Thousand
1.5 Million
2 Million
1 Million
2011
2012
2013
2014
2015
2016
2017
Includes digital news, crossword and cooking subscriptions. Second quarter results 2018
2018
3.8 Million
Subscribers
3.8 Million
3 Million
2.5 Million
$1 Billion Consumer Revenue 2.9M digital-only subscribers 200+ countries
65% more subscribers than anyone else

17. 2007 2010

18. What advertising future for news publishers?

22. The reigning absurdity in the digital news economy…
The economic value of a
journalism piece stems from its
popularity, i.e. the number of clicks
(or views) it generates, this in total
disregard for who actually reads it,
for how long, etc.
The price charged to advertisers is
the same, regardless of the quality
of the editorial hosting the ad
module.

26. Approach 1
Change the conversation on ad effectiveness

29. Consider the consumption habits of the reader
Facebook Instagram
NYT
Article
NYT
Homepage

31. The pressure to deliver instant results means
long-term effects are increasingly overlooked

32. We need to re-evaluate our metrics

33. Refocus on branding
Source: Kantar Millward Brown, Brand Z, 2017

35. ProjectFeels

36. We conducted user research to gather 150,000
data points about how different articles made
people feel.
DATA COLLECTION

37. Project Feels - how
does it work?
nytdemo
Collect Data
Crowd-source
150,000 data points
Clean the Data
Filter to the most
usable data.
Eliminate spam, vet
geography.
Build Models
Train and test 12
different
algorithmic
variants to create
predictive models
Predict Emotions
Apply the best model for
each emotion to predict
emotion-profiles for all
new articles

38. Perspective Targeting
Target media against
content we predict will evoke
certain reader sentiments.
Supported by new ad tech:
custom-built real-time
decision making engine.
Allowing us to target by emotion
Optimistic Self-Confident Inspired
Adventurous In The Mood To Spend AmusedAdventurous
Second Iteration
Love Sadness Interest
Fear HateBoredom
Hope Happiness

39. Neutrality Targeting
Target away from a certain
emotion i.e. not sad.
Reach readers who are
feeling the opposite of an
emotion to meet the specific
needs of advertisers.
Or away from certain emotions
Optimistic Self-Confident Inspired
Adventurous In The Mood To Spend AmusedAdventurous
Love Sadness Interest
Fear HateBoredom
Hope Happiness
Boredom
Sadness
HateFear

40. Love
94
Inspired
58
Amused
55
Happiness
62
Sadness
31
Boredom
63
Interest
65
In The Mood
To Spend
55
Fear
23
Self
Confident
62
Hate
42
Adventurous
62
Hope
5
Optimistic
48
*units based on 100th percentile

41. Across all ad formats
When standard ad units were aligned with
articles predicted to evoke adventurousness,
they saw significantly higher engagement than
when served cross-site elsewhere.

42. Approach 2
Rethink the display model
Improving the ad experience

44. Core: Story Page
Better for readers— even better for
ads.
112% increase in visual
attention to FlexFrames in new
horizontal layout.
4x time spent looking at
FlexFrames compared to
standard 300 x 250.
2x higher CTR on ad units
in the new layout.
the new
^
FlexFrames 2x as likely to
draw readers eye in new
layout.

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R’S NAME
Flex Frames
Enhancing the user
experience

47. Approach 3
Continue to develop meaningful
Branded Content

49. Approach 4
Diversification of Services
There are many approaches

50. Connects brands with hand-
selected Influencers to engage
consumers
>1,500 influencers: Pinterest,
Twitter, Instagram, YouTube,
Snapchat
>150 million followers
Hello Society
Influencer marketing

51. Experiential
marketing

52. HP

53. HP

54. “We need to stop interrupting what
people are interested in
and be
what people are interested in.”
CRAIG DAVIS - FORMER CHIEF CREATIVE OFFICER
J. WALTER THOMPSON

55. Thank You